The influence of WOM and peer interaction in the decision-making process of Generation Z within the family

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Young people comprise a lucrative market for many goods and influence adult spending patterns. Generation Z is the first generation who has grown up in the middle of an era of developed information technology, being one of the most critical users of social networking sites (SNS), constantly engaging in online exchanging of information and conversation among its peers. The study of this generation's current behaviors is an opportunity for marketers to get to know them, understanding the best way to target them, comprehending their preferences and influencers through their decision-making process. Trough studying the effect of Peer Interaction and word-of-mouth (WOM) throughout the decision-making process, it will be possible to uncover key influencers of Generation Z. To understand consumer preferences a survey was designed, and data on 180 observations was analyzed through Confirmatory Factor Analysis and Structural Modeling Equations (SEM), using the statistical software SPSS AMOS 21.0. The results show that Peer Interaction positively influences Generation Z's decision-making, most predominantly in the first stages of the process, while the influence of WOM was not statistically supported. Further influencers should be considered in the future, to uncover what may drive Generation Z's decisions, so that marketers can develop more accurate strategies to best target this younger generation.
Original languageEnglish
Pages (from-to)106-136
JournalInternational Journal of Marketing, Communication and New Media
Issue number2
Publication statusPublished - Oct 2017


  • Generation Z
  • Peer interaction
  • Word-of-mouth
  • Decision-making process
  • Portugal


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